It won’t be long before the insurance companies start to announce their mid year results for 2008.  The last 3 years the insurance companies have enjoyed record breaking profits.

For the first 22 years I was in the insurance business, the insurance industry failed to return a profit.  This means they paid more in claims than they collected in premiums in the first 22 years of my career.  Their sole profit was derived from their investments.

Because they have made profits for the last 3 years, insurance premiums as a whole have slowly declined.  It is difficult for the average consumer to recognize that, but trust me, it’s just now beginning to show.

It is my opinion, insurance companies are reactionary rather than proactive, and they usually react late.  Due to the current state of the economy and the price reductions the industry has given you the past couple of years, I believe the hard market will be upon us quicker than most industry prognosticators.

Don’t get me wrong.  I am not saying that I think premiums will increase in 2008, but I think the possibility exists for premiums to start increasing by the third quarter of 2009.  I don’t know who said this statement, “The definition of insanity is doing the same thing you have been doing and expecting a different result.”  But I think it certainly applies to the insurance industry.

It seems insurance companies make the same mistakes over and over and before we know it, they will be trying to explain to consumers double digit premium increases due to their underwriting losses. (Losses they will have created.).

I am giving you ample warning now, take the next year to make your business the most attractive it can be to your insurance company.  There are things you can do to avoid a large increase in premium and I can help!  Let’s sit down together and map out a plan for your company, so that your premiums remain stable. Call me today to arrange your “Hard Market Prevention Review”

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